GSPC stock exchange listing likely this month

Vol 13, PW 25 (03 Jun 10) People & Policy

GSPC’s much-awaited stock exchange launch will happen this month, according to company sources.

PETROWATCH learns the Bombay Stock Exchange and the National Stock Exchange have given their in-principle approval to GSPC’s share listing. India’s stock market regulator SEBI also gave approval on May 10 after seeking clarifications on some of the risk factors and financial details outlined in GSPC’s 551-page Draft Red Herring Prospectus submitted on March 25.

We understand GSPC was to submit the finalised Red Herring Prospectus to SEBI either on June 1 or 2 but this could not be independently confirmed. GSPC managing director Tapan Ray conducted a week of pre-IPO roadshows in Hong Kong, Singapore and London between May 22 and 29 and in Mumbai on June 2.

Assisting Ray were GSPC chief financial officer Subhash Dave, company secretary Sandeep Dave, E&P head MY Farooqui and gas business head Ravindra Agarwal. GSPC sources say these roadshows provided investors with management views about the company’s strengths.

“Typically merchant bankers (who manage the launch) stay away from such exercises once the DRHP is filed as SEBI regulations bar them from influencing investors in any way,” adds a company source. GSPC’s team returned from the last overseas roadshow in London on May 29 and the company then released advertisements in newspapers on May 31 and June 1 hyping its presence in the Indian energy sector.

“This is a sure sign the IPO is imminent,” says an industry source. “Why would GSPC spend so much on advertising” On May 31 and June 1, Ray and other top GSPC management held meetings with merchant bankers JM Financial, ICICI Securities, Enam Securities, Kotak Mahindra and SBI Capital Markets.

GSPC management also made a presentation on May 31 about the proposed IPO of 448m shares at Re1 each ($0.02) to Gujarat chief minister Narendra Modi in Gandhinagar.

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